Ten Sears and 68 Kmart stores will close around the U.S. this summer, Sears Holdings said.
Thursday’s announcement comes after the company said in February that it would “accelerate” the closing of unprofitable stores, a news release posted on the Sears Holdings website stated.
The closures are based on historical and recent store performance, as well as when the lease is up.
“The decision to close stores is a difficult but necessary step as we take aggressive actions to strengthen our company, fund our transformation and restore Sears Holdings to profitability,” Edward S. Lampert, the chairman and CEO of Sears Holdings, said in the release.
Nearly all of the stores will shut down in late July, with the exception of two Kmart locations that will close in mid-September.
The closures are expected to “generate a meaningful level of cash” from the liquidation of store inventories, along with the sale or sublease of the real estate, the company said.
“Together with the over $1.2 billion in debt financing that Sears Holdings announced it had raised earlier this month to provide capital to execute its transformation and to meet its financial obligations, the company believes it has taken important steps toward its primary 2016 objective to restore profitability,” the release stated.
Eligible associates from the closing locations will receive severance. They will also be able to apply for other positions at nearby Kmart and Sears stores.
Putnam’s KMart, located at 44 Providence Pike, is the only location on the list. Click here to see the full list of all Kmart and Sears locations that are closing.
